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Jollibee Eager to Double Expansion Plans

Philippine fast-food specialist Jollibee seems hungry to double down its expansion plans across the United States and China, which are likely to have more M&A. According to some executives, the company’s goal is to gain at least 30% of revenue in the United States. Then in China, it wants to lift its revenue by 30% of its overall sales. And the Philippines will probably fall by 30%.

Then, this plan represents revenue streams’ major rejig for Jollibee. And this would build upon plans to skip its reliance on its domestic market to 50% of sales in the medium term.

Jollibee CEO Ernesto Tanmantiong sees a massive opportunity in those countries. And that is where he wants to spread its portfolio and risk.

Tactics of Jollibee

Meanwhile, it seems like Jollibee likes to buy small, loss-making companies at low prices and turn them upside down. Usually, it receives a lot of business proposals. However, acquisitions stumbled upon more often during one of Chairman’s Tony Tan Caktiong great food tasting trips than sought out through bankers.

Former chief Erwin Elechicon states, “Most of the acquisitions resulted from Tan Caktiong eating in a restaurant, liking the food and asking who runs the place.”

And that was the case with Tortas Frontera, a minor investment of Jollibee. Founder of the company and brother of Tanmantiong, Tan, also ate one of its sandwiches at the airport. But even though Jollibee noted that they tend to buy small firms, the executives assured that they are also open in any kind of acquisition as long as the food is good.

However, their immediate focus as of now is on turning around Smashburger and Coffee Bean. And these two firms are both loss-making and bigger than the usual acquisitions of Jollibee. It acquired Smashburger for $210 million while Coffee Bean costs around $350 million, including its debt.



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